Since 2005, student loans have been nondischargeable in bankruptcy proceedings unless a debtor can prove that repayment would subject him/her to “undue hardship.” Historically, this standard has been incredibly hard to meet, causing debtors to emerge from bankruptcies still covered in student loan debt. Now, due to the ever-expanding student loan bubble, bankruptcy courts around the country are starting to take a second look at student loan debt and what can be done to change the way bankruptcy judges approach the problems student loan debts create. This added scrutiny by the courts should make lenders who offer private student loans or consolidation loans wary.More >

In March of 2017, Kentucky moved to slash statutory interest rates. HB 223, sponsored by Rep. Joe Fischer and signed by Gov. Bevin on March 16th, cuts interest rates on civil judgments by half in some instances. This new law may have a significant impact on lenders and judgment creditors, as the higher rates provided an incentive for judgment debtors to move quickly to pay off the civil judgment. More >

The Kentucky Supreme Court is shaking things up for banks that collect on charged-off debts. The decision in Unifund CCR Partners v. Carol Harrell, 509 S.W.3d 25 (Ky. 2017), is an eye-opener for lenders regarding their strategies to recover a contractual or statutory right to collect interest on prejudgment debt. More >